The Ultimate Guide To Dogecoin Investment With Fidelity

Dogecoin is a cryptocurrency that was started as a joke in 2013, based on a doge meme (the Shibu). It is a cryptocurrency that enables one-to-one transactions across a network. Dogecoin is extremely volatile and is considered a risky investment. It is especially risky because it doesn't have as much credibility as other cryptocurrencies, primarily Bitcoin. While Dogecoin may be a lucrative short-term investment, short-term investing is a great way to lose a lot of money. Timing the market is incredibly difficult, especially with a speculative investment like Dogecoin, which has shaky fundamentals.

Fidelity does not currently support Dogecoin, although it does support other cryptocurrencies. This article will discuss whether and how it is possible to invest in Dogecoin through Fidelity.

Dogecoin's popularity and Elon Musk's influence

Dogecoin, which was once dismissed as an internet joke, has become a significant player in the cryptocurrency market. The cryptocurrency, which was launched in 2013, was inspired by the popular "Doge" meme featuring a Shiba Inu dog with amusing captions. Dogecoin's creators, software engineers Billy Markus and Jackson Palmer, infused the meme's playful spirit with Litecoin's technology to create something truly unique.

The vibrant and giving spirit of the Dogecoin community played a pivotal role in its journey to popularity. Their fun-filled approach, coupled with numerous charitable projects and fundraising events, significantly raised Dogecoin's profile, attracting a surge of users and enthusiasts to the cryptocurrency scene. The endorsement of prominent figures, particularly Elon Musk, further propelled Dogecoin's ascent. Musk, the CEO of Tesla and SpaceX, has been a steadfast supporter of Dogecoin, holding a substantial amount of the cryptocurrency himself.

Each time Musk has tweeted about Dogecoin, its price has spiked. For instance, when he tweeted about it in May 2024, the cryptocurrency's value rose by $2 billion in just a few minutes. Musk's appearance on "Saturday Night Live" in May 2021 coincided with Dogecoin hitting an all-time high of $0.7376, underscoring his influence on the cryptocurrency's narrative. With Musk's continued interest in cryptocurrencies and his acquisition of Twitter, there is anticipation of potential advancements for Dogecoin, particularly regarding payment integration.

Dogecoin's technology sets it apart from other cryptocurrencies. It is closely tied to Litecoin, as it is essentially a spinoff of the Litecoin blockchain. Dogecoin uses a simplified version of the Scrypt algorithm, reducing the amount of energy needed for mining compared to Bitcoin. Additionally, Dogecoin's proof-of-work protocol allows it to collaborate with other networks that use the Scrypt algorithm, improving its efficiency and security.

While Dogecoin's popularity and ascent can be largely attributed to Musk's influence, there are also concerns about his impact on the community. Critics argue that Musk's influence might be skewing the narrative around Dogecoin, potentially leading to oversimplified solutions to complex issues. Despite these concerns, Dogecoin's journey from a meme to a legitimate cryptocurrency has been nothing short of extraordinary, and its future continues to be shaped by Musk's interest and the communal effort behind its rise.

The risks of investing in Dogecoin

Dogecoin is a cryptocurrency that was initially created as a joke or parody of the crypto market. It is considered an alternative cryptocurrency coin, comparable to Litecoin. While Dogecoin has gained popularity and seen massive growth, there are several risks associated with investing in it.

Firstly, Dogecoin has an infinite supply, with a large supply of over 130 billion tokens and more than 14,400,000 new tokens being created each day. This infinite and ever-growing supply makes it challenging to place any fundamental value on Dogecoin, especially when compared to finite cryptocurrencies like Bitcoin.

Secondly, Dogecoin has a low level of decentralization, with only about 1090 nodes in its network. This makes it more susceptible to a 51% attack, where a single person or group gains control of more than 50% of the network. Such an attack could put investors at risk of losing all their invested value.

Thirdly, Dogecoin's price is highly volatile and subject to significant fluctuations. It is influenced by various factors, including social media attention, Elon Musk's tweets, and market speculation. This volatility can lead to rapid and substantial gains or losses for investors.

Additionally, Dogecoin has a history of security breaches, including wallet hacks and fraud, resulting in financial losses for its users.

Furthermore, Dogecoin is not backed or regulated by any government or financial institution, and it lacks intrinsic value. This means that investors do not have the same regulatory protections as they would with traditional investments.

Lastly, Dogecoin's success relies heavily on speculation, meme culture, and social trends, which may not be sustainable in the long run.

In conclusion, investing in Dogecoin carries significant risks, including high volatility, low decentralization, security concerns, a lack of regulatory oversight, and the potential for rapid losses. Investors should carefully consider these risks and conduct thorough research before deciding to invest in Dogecoin or any other cryptocurrency.

How to buy Dogecoin

Dogecoin is a cryptocurrency that was started as a joke in 2013, based on a doge meme (the Shibu). It is similar to Bitcoin in that it enables one-to-one transactions across a network. However, unlike Bitcoin, Dogecoin doesn't have as much credibility as it is not accepted by many businesses as a form of payment.

Dogecoin is considered a risky investment because it is extremely volatile. Its price can fluctuate unpredictably and drastically, and it doesn't have the same practical use as other cryptocurrencies.

If you are still interested in buying Dogecoin, there are a few things you should know. Firstly, you will need a crypto wallet to store your Dogecoin securely and make transactions. Crypto wallets typically integrate into browsers or mobile apps and come with a password. Hardware wallets are also an option but may cost between $70-$100.

Once you have set up your wallet, you can use an exchange platform to purchase Dogecoin. Some popular exchange platforms that offer Dogecoin include Uphold, Webull, Robinhood, Kraken, and Crypto.com. When using an exchange, you will likely have the following payment options:

• Credit card: This is the fastest method but also the most expensive, with fees ranging from under 2% up to 3% plus a flat fee.
• Bank transfer: This is the slowest method, taking 2-3 days to complete, but most exchanges offer direct access.
• Cryptocurrency: This option involves trading the cryptocurrency you own with another crypto trader who owns DOGE. Fees are typically lower than 1% but may be more complex for beginners.

It is important to note that as of February 2021, Fidelity does not support Dogecoin. However, they do deal with other types of cryptocurrencies, such as Bitcoin.

Other cryptocurrencies supported by Fidelity

While Dogecoin is not currently supported by Fidelity, the platform does support other cryptocurrencies.

Fidelity currently offers two cryptocurrencies: Bitcoin and Ethereum. Bitcoin, also known as BTC, is the world's first and largest decentralized digital money. It is not backed, controlled, or owned by any government, central bank, corporation, or other institution. Ethereum, or ether, is the second-largest cryptocurrency and is also highly volatile.

Fidelity also offers the Fidelity® Metaverse ETF (FMET), which allows investors to discover the real potential of a virtual world built on blockchain technology. Additionally, the Fidelity® Crypto Industry and Digital Payments ETF (FDIG) focuses on companies that help power crypto and digital payments.

Fidelity has been an innovator in crypto since 2014 and launched its first crypto service in 2018. The company's crypto offerings are currently available in 35 states, and it provides educational resources to help investors trade crypto with clarity.

The future of Dogecoin

Dogecoin is a cryptocurrency altcoin that trades under the DOGE ticker symbol. It was created in December 2013 as a joke, named after the popular "Doge" meme based on a Shibu Inu dog. Due to the popularity of the meme at the time, the joke currency quickly turned into a project with a thriving community and started to see regular use as a transfer of value. Dogecoin is often used to move money and capital from one cryptocurrency exchange to another because of its low fees and fast speeds.

Dogecoin is a popular digital currency altcoin and has even attracted interest from celebrities such as Elon Musk, Snoop Dog, and Elon Musk, who the crypto community has affectionately dubbed the "CEO of Dogecoin." Musk has talked about Dogecoin publicly and is now working with Dogecoin developers to streamline transaction efficiency and speed.

Dogecoin's longevity is ensured because it has been around for so long and has a place in the crypto space for the long haul. However, Dogecoin price predictions are rare and relatively low compared to other crypto assets like Bitcoin, Ethereum, Ripple, Litecoin, and EOS. This is because making a Dogecoin price prediction is challenging due to all the external and unpredictable factors that affect the token's value.

Dogecoin's future distribution is endless, and so is the supply, most Dogecoin price targets are low compared to projections on other cryptocurrency assets like Bitcoin, which have a finite and defined amount of coins that will be mined. Less supply usually means a higher price if there is demand. That said, it is not impossible to make a long-term Dogecoin price prediction; it is just that the Dogecoin trend hasn't always been positive, leaving Dogecoin future adoption up in the air.

Dogecoin's price history has been notable and sometimes volatile. Originally created in 2013 as a meme-based cryptocurrency, Dogecoin gained popularity for its Shiba Inu dog logo and a friendly community. For many years, its price remained relatively low. The reason for the 2020-21 Dogecoin surge in value was largely due to social media attention, celebrity endorsements, and speculative trading by the public that had been introduced to the crypto through its extensive media coverage.

Dogecoin's future is looking strong, as is the rest of the cryptocurrency market. But with even the highest possible prices only reaching under $1, TikTok users and anyone else wondering if Dogecoin will hit $1 are likely to be disappointed. Dogecoin can be expected to appreciate in value at a reasonable rate, but not to the same prices as Bitcoin, Ethereum, EOS, Litecoin, and Ripple. Because of this, it is difficult to call Dogecoin a good investment when there are so many better choices available.

Dogecoin is expected to go up according to technical analysis charts and expert price predictions and forecasts. Dogecoin's price could claim the $0.3392 mark by the end of 2024. According to a Dogecoin price prediction model, DOGE's price in 2025 would be $0.14. This price would, however, range from $0.17 to $0.11. Dogecoin's price in 2026 would be $0.18, ranging from $0.22 to $0.15. Dogecoin's price in 2027 would be $0.24, ranging from $0.29 to $0.19.

Dogecoin's long-term future depends on its potential utility. Meme popularity alone may only sustain it for a while. However, progress in lower transaction fees, speed, and business collaboration could see it thrive as a mainstream digital currency. Its large and passionate community will likely continue to evolve the coin positively. While long-term predictability is difficult, Dogecoin shows signs of being more than a temporary phenomenon. As long as upgrades and adoption progress address technical challenges, it stands a fair chance of enduring as a widely used cryptocurrency with upside price potential in the coming years.

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